OfflineHi,
I have the money to move on a property through a HELOC. If I paid for a property with the HELOC I can move fast and make a fast, cash offer to a seller.
If I decide to just pay the HELOC payments it would be interest only, but can always add to it w/o penelty. After the purchase I am considering then taking a traditional mortgage for 30 years and then paying the HELOC off.
Is this a method anyone on here is using lately? Do you find it beneficial since you don't have to come up with any down payment and can move fast? Or should I try to get a traditional pre-approved mortgage and just use the HELOC for a small down payment and pay on both?
Thanks!
Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME" 
using a home equity line of credit is a great way to obtain property. and if you're using home equity line of credit just make sure you have immediate access to it so you can call it a cash offer. you will want to watch out for the amount you were spending on the home so you're not over extending your current mortgage. you're going to treat it as if it's any other money that you are borrowing, you want to make sure you are getting the proper ROI.
if you went with the traditional mortgage you would have to pre-qualify and treat your offer as contingent upon alone. when you do that the loan contingency could make it look less attractive if it was a bank or someone who is in a hurry. also you have to think about when you're trying to sell it. if it's a HELOC all you have to do is pay it back and get your money back to do it again. if you do a traditional mortgage you have to be concerned about prepayment penalties and also pre-qualifying for your next loan.
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I made a mistake I'd like to share.
I purchased a foreclosure using a HELOC. Purchased the property all cash and happened to have a Ccard offer for 12 months no interest to help with rehab costs. Yea!
I listed the property before refinancing the HELOC. The banks and mortgage companies wouldn't/will not refinance (put a mortgage on the property and cash out to pay off the HELOC)if the property has been listed on MLS with in the past 90 Days.
So you'd have to take it off the market for 90 days before you could get the cash out.
I was going to do a lease option that prompted me to think refinance.
It'll all work out.
Its seems your exit is to buy/fix/Hold, if Not, what is your exit?
Will it cash flow enough?
Run all the numbers and include All expenses,ins., taxes,vacancies,future repairs and crazy tenants damage...ARV,FMV and what you can sell it for FAST
NUMBERS don't LIE...
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
We had intended to buy/fix/sell.
We have had 3 offers so far. One was way to low. Another, was low and asked for buyers closing as well. We may still hear from them. And this lease option offer came up.
So I wanted to pass along the tid bit about Don't list your property if you financed it with a HELOC. At least not until after you refinance and pay off the HELOC.
My objective is to pay off the HELOC. The property is still on the market. We turned down the lease option as their wasn't enough additional profit to keep the HELOC tied up for the term of the lease, 1yr.
I would appreciate your thoughts on using chunks of a HELOC for down payments with conforming or traditional mortgages in order to buy/fix/hold. 100k HELOC over 4 deals @ 20k down.
Of coarse you have to get the fix complete and tenant in as soon as possible.
What would be a good strategy for paying off the HELOC portions before they come out of their interest only status in 3-4 years?
I'd suppose they'd refinance the entire HELOC. But what do you suppose the refi may look like; in order to account for the potentially higher payment when considering the cash flow of the property?
Thoughts?